Buying a property to rent out before living in.

Hi all,

I'm trying to do some research on buying my first home.
I can't afford anything in Sydney, and don't think there is any value here anyway.
I was hoping to personally check out places in Melbourne or Brisbane that I would like to live in, then rent them out via a property manager, then, when my job allows, move there in a few years.

My idea is that I want to get onto the property ladder now, rather than later.

Is there any viable option that is close to this? Are there any resources that I could read to further educate myself?

Thank you!

 

I have 90k to deposit. 100k total Dual Income though we are both hopefully at the cusp of pushing higher in our careers.

 

Yeah, I've been reading up on that and trying to understand it better.
Is there a more viable or sensible option you can think of, including going the route of having my first property be investment then buying a second, stuff like that?

 

You buy an ip, buy an ip. Meanwhile develop the highest paid job you can. Why force yourself to live somewhere?

Btw have you ever seen value in sydney? 2008? 2018?

 

Sorry, I meant that I've missed the boat, in a sense, and feel that Sydney is now closed to people like me.

I'm trying to find somewhere where the market is like Sydney was before it got shut down to people on regular incomes.

 

You have 90k deposit and 100k income that will increase. You could buy an older 600k 2 bed unit or a small house in the West. There are probably some good deals out there at the moment.

10 years from now? Upgrade to a duplex in a nicer area.

10 years after that? Upgrade to a house in an even nicer area. Pay it off by retirement.

After you die your kids will benefit. Then they wont feel like theyve been left behind.

It's possible, not easy, but doable.

 

But then I'll be in my first house at 50. I don't believe in an afterlife and I don't plan on having kids, so anything post-death is irrelevant to me. I also don't believe I will live past 65.

I'm looking for a way to have a house in the short to mid-term, not plan for what to do once I'm nearly dead or already dead.

 

Well, no, you could afford a house in Western Sydney now. 600k or so. Might be a 3 bed weatherboard but it's a house. Maybe not what you 'want', but you cant afford what you want.

If you are just after a cheap house, why not move to a regional centre?

 

But that's what I'm saying, I want to move out of Sydney to to somewhere reasonable an hour out of Melbourne or Brisbane by car. I feel that's not asking an absurd amount if I'm willing to pay nearly half a million dollars, is it?

 

you don't know whether you may be in Brisbane or Melbourne let alone which part of Melbourne you want to live in. So I wouldn't think about the move in factor but if you do move in later that can be seen as a bonus.

World changing too quick nowadays. Find the best investment for Capital growth and from personal experience/observation buy in the areas you are most familiar with as Home court advantage is King. This environment it won''t be in a rising tide lifts all boats kind of scenario

 

Many others have touched on this, but why do you feel that Sydney is out of your range - why "missed the boat? It depends on your funding capacity, but if you are young, it is better to stick to the major capitals if you can. And if you live in Sydney, well, owning a property here gives you choices.

Is Sydney out of your price range because you are committed to a detached house? Or is an apartment an option?

Apologies if you have already answered these questions above.

 

First Home Owners stamp duty exemption wont apply if you rent the property out, so you will have to add Stamp duty to the mix as well.

 

Hello @Fruitjuicante

What kind of a home would you like to live in eventually? Small, medium sized, large, modern/ character home.........

What kind of suburb/environment/community would you like to live in? eg beach, bush, city vibe, white picket fence Pleasantville, specific cultural group, excellent internet connectivity,

My interpretation of the opening post is that you are planning to buy a place and move there in a few years. You have already decided that you want to leave Sydney. Come on up to Brisbane for housing that is certainly affordable for a couple on regular incomes. Half a million dollars will get you some very nice established housing 20-30 ks from Brisbane CBD, properties that would be several hundred thousand dollars more in established suburbs of Melbourne. The climate here is better than Melbourne's, too.

The Australian economy is such that there is not likely to be any capital gains in the next two years in pretty much all of the country, so selecting a strategy based around potential Capital Gains Taxes wont be as important as it would be if we were heading into a property boom.

 

Well first of all good luck and exciting times ahead.

With your deposit and income, I'm sure you can get something in Sydney. But what type or security and location is another thing.

I've had clients that's always had mentality they needed to live closer to the city so they csn only afford an smaller apartment, but once more research was done they were happy to buy something bigger a little more out West.

 

https://www.realestate.com.au/property-house-nsw-st+clair-131771466
This is under $500k. A serviceable brick 3 bed home in St Clair, not far from the new airport. OK, it has got an 'interesting' floor plan, but plenty big enough for someone not planning on having kids.

 

That

I'm definitely looking more into Sydney properties. Everyone here has talked some sense into me.

I think maybe buy somewhere reasonable outside of Sydney, then maybe rent it out and move to Melbourne in a more distant future with the equity.

Thank you!

 

Not at all! For me, I care first and foremost about just leading an average life. Not pushing myself to death in my career to make a tonne of money. I just want to move somewhere less competitive.

My ideal life is to live in a pretty small and cheap house, but not claustrophobic, on my own land so I don't have to pay strata, put solar panels on it to minimise costs, and retire as soon as possible living frugally.

A lot of people here definitely have grown up with money or in better times, none of which I have ever had the joy of experiencing, and perhaps they also believe in an afterlife or put value in leaving something after death, which I myself do not value as I don't believe in an afterlife.

I want something small and cheap, as soon as possible, where I pay as little as possible once it is paid off. I just want to get to an average point in my career, save up some cash, and get out of the whole race entirely.

Sydney doesn't seem to offer anything remotely like that haha.